Why AppLovin Soared and The Trade Desk Plunged

Just like after its last quarter, AppLovin (APP) shares jumped after the firm posted quarterly earnings. APP stock added 32.73% last week.The company posted a 43.7% Y/Y jump in revenue, to $1.37 billion. GAAP EPS was $1.73, easily beating Wall Street’s estimates by nearly $0.50. The firm spent $500 million to retire shares.AppLovin has been far ahead since the days of Unity Software (U) rejecting its bid to buy the firm. The firm succeeded in going after the DTC commerce market. As a result, it is seeing success across all categories that come onto the platform.AppLovin has too much demand from advertisers that it has insufficient supply. After bringing more supply online, the company was able to fill in more ad slots in the gaming sector. The Trade Desk (TTD) closed at $80.16 last week, a price not seen since April 2024. Non-GAAP EPS was $0.59 on revenue of $741.01 million (+22.3% Y/Y). In Q1, revenue of $575 million is below consensus.TTD stock is typically a strong-return stock for investors that buy on the dip. It is usually consistent in executing its business objectives.The risk for TTD stock staff who continue to exercise their stock compensation. To avoid missing out on a higher price, employees may accelerate their share sale if TTD stock trends lower.